Developer Mirvac Group has reported a strong first quarter for FY26, driven by solid residential sales, continued expansion in its Build to Rent and land lease portfolios, and the execution of key capital initiatives.
In an operational update released to the ASX, Mirvac confirmed positive momentum across all divisions, including a significant joint venture agreement with Mitsubishi Estate Co. Ltd for the delivery of the Harbourside precinct in Sydney.
The partnership is expected to unlock approximately $450m of capital, supporting the Group’s broader development pipeline and providing future earnings visibility through development management fees and residential settlements anticipated in FY28.
Mirvac has reported the exchange of 619 lots, an increase of 79% on the same period last year, with a further 432 conditional sales on hand. Settlements reached 265 lots, with defaults remaining low at 1.3% and pre-sales of $1.6bn. Activity was supported by strong results across masterplanned communities, including Highforest and Cobbitty in Sydney, Smiths Lane, Woodlea and Olivine in Melbourne, and Everleigh in Brisbane.
Mirvac also launched its new Sydney masterplanned community, Everdene at Mulgoa, only 12 months after acquisition, achieving 86% pre-sales on its first release. Moreover, the Group has continued to grow its presence in the living sectors during the quarter. For Build to Rent, leasing activity was positive across newly completed assets, including LIV Anura in Brisbane, which is now over 46% leased.
“We saw a significant uplift in residential sales in the first quarter, with 619 lots exchanged, driven by strong momentum at our Sydney and Melbourne masterplanned communities – up 150% and 125% on the same time last year, respectively.
“Our business is well placed to benefit from the federal government’s new first-home buyer guarantee scheme introduced earlier this month, with over 1,400 of our expected lot releases in FY26 falling within the updated pricing caps. We executed on a major strategic objective for FY26, entering into a joint venture agreement with our aligned capital partner, Mitsubishi Estate, to deliver and co-invest in the Harbourside precinct.
“The new partnership helps to unlock approximately $450m of capital to fund our development pipeline, while delivering development management fees during construction.
“The selldown also unlocks some upfront profits on the residential land component, with the majority expected to be realised on residential settlements in FY28, providing great visibility of future earnings.”
Campbell Hanan, Group CEO & Managing Director, Mirvac
The stabilised Build to Rent portfolio is 95.3% leased, with net leasing spreads of 3.1% achieved across assets. The company also completed LIV Albert in Melbourne in July, taking its total Build to Rent presence to 2,174 operational apartments across five assets on the eastern seaboard.
Additionally, Mirvac expanded its land lease portfolio with a new site acquisition in Victoria comprising 205 lots and advanced due diligence on two further sites totalling 728 lots. This brings the total land lease portfolio to over 8,400 lots.
The update also highlighted progress across Mirvac’s commercial and industrial developments. The company achieved topping out at 7 Spencer Street, Melbourne, and is in advanced discussions with tenants that would take pre-leasing to around 50%. At Aspect North, Kemps Creek, the final warehouse completed, with additional warehouses at Aspect South scheduled for completion in early 2026.
“Our best-in-class investment portfolio performed well, with high occupancy maintained at 97% and a weighted average lease expiry of 5.3 years. We continued to grow our exposure to the living sectors, with a further three sites secured or in advanced due diligence in our land lease portfolio and discussions well progressed for a new build to rent site in Melbourne.
“Our Mirvac Wholesale Office Fund raised a further $65m of new capital during the quarter, taking the total amount of capital raised to approximately $415m since launching in April. Our in-house asset management, strong governance, and deep creation capability continue to resonate with third-party capital, positioning us well to attract further capital to the platform.
“It has been a strong start to FY26, and with market fundamentals improving, the Group is well positioned to execute on its objectives and continue the strong momentum into 2026.”
Campbell Hanan, Group CEO & Managing Director, Mirvac
Mirvac’s investment portfolio maintained strong performance, with occupancy remaining high at 97% and approximately 20,900 sqm of leasing completed during the quarter. The weighted average lease expiry profile sits at 5.3 years, with positive leasing spreads achieved across all asset classes, including 9% across the land lease portfolio.
The Mirvac Wholesale Office Fund raised an additional $65m during the quarter, bringing total capital raised since launch in April to approximately $415m. Fund gearing remains low at around 25%, and Mirvac expects further capital inflows as investor interest in the platform continues.
Mirvac reaffirmed its FY26 guidance of operating earnings per security between 12.8 and 13.0 cents, and a distribution per security of 9.5 cents, subject to key assumptions including between 2,000 and 2,300 residential lot settlements and the execution of capital partnering initiatives. The weighted average cost of debt is expected to remain at around 5.3%.
